Creating finances
Teenagers have very limited sources of income, whether from their parents or from side jobs. Many teenagers today, without realizing it, waste their money. Have you ever considered that financial management can start with managing their allowance? And what happens if teenagers don’t manage their finances well? They will certainly get caught in financial trouble. Therefore, teenagers must understand how to create and adhere to a budget. Budgeting isn’t just about having a lot of money and limiting spending, but also managing financial resources wisely for long-term investment.
One habit that has a significant impact and can be implemented by teenagers is managing their personal finances through a simple budgeting system. Every time they receive pocket money from their parents or additional income, teenagers are instructed to divide it into several basic categories: needs, savings, wants, and charity. The main challenge with this system is consistency. Teenagers are emotionally unstable and easily influenced by trends or peer pressure, which can lead to them giving up. Therefore, parents need to actively model and monitor their teens’ financial development. Schools can also incorporate financial literacy into lessons and extracurricular activities.
The benefits of sticking to a budget as a teenager include: first, it fosters responsibility from an early age. Teens learn to be responsible with their money. They don’t just spend, but think before spending. Second, it forms healthy financial habits. Teens become accustomed to living a planned life, avoiding wastefulness, and knowing their spending limits. This lays an important foundation for later adulthood. Third, it avoids consumerist and impulsive behavior. Teens are better able to restrain themselves from buying things simply because of trends or peer pressure, because they know their budget limits. Fourth, it teaches prioritization and decision-making. When money is limited, teens learn to distinguish between needs and wants. This helps them think critically and make wise decisions. Fifth, it fosters financial independence. With a budget, teens begin to understand the value of money and are less dependent on their parents. They can start saving for personal goals, such as buying books, gadgets, or vacations. Sixth, prepare them for adulthood. As adults, they will face bills, installments, and other financial responsibilities. The habit of sticking to a budget will significantly help them manage their financial lives stably. Seventh, reduce stress related to money. When they know where their money is going and how to manage it, teens will feel calmer and less likely to panic when they run out of cash. Eighth, increase self-confidence. Teens who can manage their money well will feel more confident because they know they have control over their personal finances.
Teens, as the next generation, have the potential to build a great future that isn’t created overnight, but rather shaped by small habits like saving, recording all expenses, and learning to restrain themselves from fleeting desires. All of these are forms of long-term investment for a more stable and independent life by implementing a simple budgeting system and establishing a healthy budget from an early age. In truth, a strong foundation for life is not only supported by big dreams, but also by managing small things consistently and consciously. “Money managed well today is a bright future tomorrow.”
By: Levina Aulia Desitasari
Write and Win: Participate in Creative writing Contest & International Essay Contest and win fabulous prizes.
About the Author
